Aave

Compound

DeFi

Dogecoin

TRON

<div class="finbold"> 
 <p class="paragraph">The growing interest in decentralized finance (DeFi) reflects a market striding towards rationality, efficiency, and increased awareness of risks, and all signs point to a forthcoming bullish summer, marked by renewed confidence and a <a rel="dofollow" title="shift" href="https://thebittimes.com/tag/shift.html">shift</a> towards safer investment strategies.</p> 
 <p class="paragraph">Once in love with nothing but high yields, investors are now prioritizing security over raw numbers.&nbsp;</p> 
 <p class="paragraph">Data collected by Exponential and published in March, reveals a significant portion of DeFi funds, approximately 75%, are locked in pools offering conservative annual percentage yield (APYs) ranging from 0-5% (as seen below).&nbsp;</p> 
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   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"> <path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
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 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="457" src="https://cdn.thebittimes.com/images/2024/03/27/bdf3d0c6088079ad9f88b82b6eb1f2d1.webp" alt class="wp-image-164035" srcset="https://cdn.thebittimes.com/images/2024/03/27/bdf3d0c6088079ad9f88b82b6eb1f2d1.webp 1024w, https://cdn.thebittimes.com/images/2024/03/27/bdf3d0c6088079ad9f88b82b6eb1f2d1.webp 300w, https://cdn.thebittimes.com/images/2024/03/27/bdf3d0c6088079ad9f88b82b6eb1f2d1.webp 768w, https://cdn.thebittimes.com/images/2024/03/27/bdf3d0c6088079ad9f88b82b6eb1f2d1.webp 1185w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Source: Exponential.fi
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 <p class="paragraph">Such a cautious approach, particularly evident in Ethereum (ETH) staking pools, reflects a notable departure from the days of relentless yield chasing.&nbsp;</p> 
 <h2 class="wp-block-heading" id="h-a-new-optimism-in-the-market">A new optimism in the market</h2> 
 <p class="paragraph">A resurgence in Total Value Locked (TVL) within yield-generating DeFi protocols signals renewed optimism and market liquidity.&nbsp;</p> 
 <p class="paragraph">However, interest in sectors like insurance and derivatives has waned, highlighting the challenges of integrating certain financial activities into the DeFi framework.</p> 
 <h3 class="wp-block-heading" id="h-staking-and-secure-lending">Staking and secure lending</h3> 
 <p class="paragraph">The landscape of DeFi job opportunities is also evolving, and we’re seeing a <a rel="dofollow" title="shift" href="https://thebittimes.com/tag/shift.html">shift</a> towards low-risk endeavors such as staking and secured lending.&nbsp;</p> 
 <p class="paragraph">Staking emerges as a cornerstone of DeFi’s growth, fueled by Ethereum’s transition to a Proof-of-Stake (PoS) model.&nbsp;</p> 
 <p class="paragraph">Despite declining yields due to increased participation, staking now comprises around 80% of DeFi’s TVL.&nbsp;</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="600" src="https://cdn.thebittimes.com/images/2024/03/27/34b17f8fdde050a2ee83405526e7e149.webp" alt class="wp-image-164036" srcset="https://cdn.thebittimes.com/images/2024/03/27/34b17f8fdde050a2ee83405526e7e149.webp 1024w, https://cdn.thebittimes.com/images/2024/03/27/34b17f8fdde050a2ee83405526e7e149.webp 300w, https://cdn.thebittimes.com/images/2024/03/27/34b17f8fdde050a2ee83405526e7e149.webp 768w, https://cdn.thebittimes.com/images/2024/03/27/34b17f8fdde050a2ee83405526e7e149.webp 1139w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Source: Exponential.fi
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 </figure> 
 <p class="paragraph">Restaking options now available on platforms like EigenLayer further enhance demand for Ethereum staking, promising higher yields (although with increased risk).</p> 
 <p class="paragraph">The lending sector experiences a revival, driven by a collective risk-on attitude and a desire for increased yields.&nbsp;</p> 
 <p class="paragraph">Stablecoin borrowing rates on platforms like Aave (AAAVE) and Compound are now in the double-digit ballpark, incentivizing traders to leverage stablecoins for higher returns.</p> 
 <h2 class="wp-block-heading" id="decentralized-exchanges">Decentralized exchanges&nbsp;</h2> 
 <p class="paragraph">Decentralized exchanges (DEXs) face moderated growth due to concerns about impermanent loss.&nbsp;</p> 
 <p class="paragraph">However, advances in capital efficiency offer higher yields with reduced capital, mitigating some of the risks.</p> 
 <p class="paragraph">The bridging sector witnesses a significant TVL increase, propelled by the emergence of Layer-2 rollups, with trustless bridging models promising a more integrated and efficient DeFi ecosystem.</p> 
 <p class="paragraph">A <a rel="dofollow" title="shift" href="https://thebittimes.com/tag/shift.html">shift</a> away from rewards-based yields towards activity-driven yields indicates a maturing DeFi market sustained by real on-chain activity.&nbsp;</p> 
 <p class="paragraph">Despite the <a rel="dofollow" title="shift" href="https://thebittimes.com/tag/shift.html">shift</a>, however, incentives remain a viable strategy for attracting new users and raising capital.</p> 
</div> 
<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/defi-poised-for-transformative-shift-according-to-exponential-s-state-of-defi-report-tbt83698.html">https://thebittimes.com/defi-poised-for-transformative-shift-according-to-exponential-s-state-of-defi-report-tbt83698.html</a></p>

DeFi poised for transformative shift, according to Exponential’s ‘State of DeFi’ report

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